AUD/USD: Break below 0.7180 to open up the 0.7100 level

AUD/USD witnessed aggressive selling on Monday. During the Asian session on Tuesday, the aussie has regained some positive traction and has moved back above the 0.7200 mark. But as FXStreet’s Haresh Menghani notes, a break below 0.7180 would set the stage for further losses.

AUD/USD defends ascending trend-line support, at least for now

“The overnight corrective pullback from the vicinity of 100-day SMA stalled near an ascending trend-line extending from the 2021 low. The mentioned support, currently around the 0.7180 region, should now act as a pivotal point for short-term traders.” 

“A convincing break below 0.7180 will set the stage for additional losses and accelerate the fall towards the 0.7100 round-figure mark. Some follow-through selling below the 0.7085 horizontal support might turn the pair vulnerable to challenge the key 0.7000 psychological mark.”

“Any subsequent positive move beyond the 0.7220 level might now confront resistance near the 0.7250-55 area. This is followed by the 0.7275-80 region, which nears the 100-DMA. A convincing breakthrough will be seen as a fresh trigger for bullish traders and set the stage for additional gains.”